In this video, I detail the differences between hiring an Independent Contractor Vs an Employee, and why this distinction is important to stay in compliance with state and federal requirements. This is a must-watch for any business owner!
As an employer, you must determine which tax classification you use to categorize each new hire. Sometimes the distinction is easy, but often it’s challenging to make the right call.
By the end of the video, you’ll have criteria to define an independent contractor (a.k.a “freelancer” or “1099er”) in contrast to an employee or “temp employee.”
I also briefly cover the W-2 vs W-4 vs W-9 vs 1099 forms.
For a more thorough look at the tax forms W2, W4, W9 and 1099, check out this episode: https://www.youtube.com/watch?v=RnQlwL5mKsQ